they charge. That will show whether or not it is profitable.
lohn lr. remembered a method called the work breakdown structure (WBS) that he thought might serve as a useful tool to estimate costs. Also, the use of such a tool could be passed along to the site supervisor to help evaluate the performance of work crews, lohn Ir.'s WBS is shown in Table 5-2. The total cost John |r. calculated was.$l85.00, based on 12.33 labor-hours at $l5.00/labor-hour. John Jr. found that, on average, Ringold's competitors charged $229.00 to install a similar pool, lohn lr. thought he had a winner. He called his father and made an appointment to present his findings the next morning. Since he had never assembled a pool himself, he decided to increase the budget by 10 percent, "just in case."
Questions: Is John Jr.'s WBS projection reasonable? What aspects of the decision will John Sr. consider?
The board members of HAC Computer Company approved the building of a new facility approximately six months ago. The facility is to be constructed in South Carolina and will be used to manufacture a new line of microcomputers. The company is currently manufacturing only minicomputers and workstations but because of the tremendous market for the micro, they plan to enter this field also. The company has already selected the project manager and the project team. The project manager is ready to get the project under way and has begun work on the project master plan. The three aspects of the master plan that she is most concerned about are schedules, resources, and personnel. Since she is so concerned about scheduling she decided to get a head start and do the project scheduling estimates for the milestone events herself For the resource planning she developed some capita'
requirements for the various parts of the project that would be continuing throughout the project, and for personnel she developed a preliminary forecast of what skills she felt might be needed, and when, over the life of the project.
Questions: If you were the project manager, would you handle these three aspects of the master plan the same or differently? Explain. What elements of resource planning and personnel planning should be included?
y INDIVIDUAL EXERCISE
Recall a recent or current project in a formal group, such as a church committee or social group, of which you are a member. Construct a detailed Gozinto chart and Work Breakdown Structure for the project. Then lay out a linear responsibility chart for the project along the lines of Figure 5-7. Next, design a general organization chart that includes all the parties identified on the linear responsibility chart.
^ PROJECT TEAM CONTINUING EXERCISE
For this exercise, initial project planning must be conducted. To construct the overall project plan, start with the action plan and construct the work breakdown structure, a Gozinto chart, and determine a linear responsibility chart. Include the instructor in your plans as a representative of top management. From this set of information, build a preliminary project budget and determine a master schedule with major milestones. Finally, use the TREND procedure to build an organizational overlay, identify potential problem areas, and suggest possible remedies. Are there any missing information sets or aids that could be helpful for your specific project?
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What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.